House prices in England and Wales nudged up in January 2025 by 0.1%, yet remained 3% lower than a year earlier according to data produced by Acadata on behalf of e.surv.

House prices are nearly £25,000 (more than 6%) below the previous peak reached in late 2022 and average annual prices in January are still 3% lower than 12 months ago and on a par with end-2021 values.

Rob Owens, Head of Research at e.surv, said: “Our latest house price index reveals a nuanced picture of the housing market in England and Wales. In January 2025, the average sale price of a home rose by 0.1% to £352,300, ending a four-month decline. Despite this modest increase, average annual prices remain 3% lower than a year ago and nearly £25,000 below the peak of late 2022.

“The continued drag from southern England, particularly London, significantly impacts our overall metrics. This drag is largely due to affordability constraints, with stretched affordability and higher mortgage rates making it difficult for buyers to enter the market.

“However, there are signs of forward momentum. First-time buyer demand surged following the April Stamp Duty rise. With mortgage approvals increasing and the Bank of England's recent base rate cut to 4.5%, we anticipate further market strengthening in the coming months. Despite global economic turbulence, the underlying shortage of homes and strong wage growth continue to support the market in England and Wales.”

The North East and North West were the only regions experiencing year-on-year price growth with 0.7% and 0.9% increases respectively, with prices up to an average of £198,263 and £253,428 in December 2024.

London and the South East house prices account for three-quarters of the headline 3.3% year-on-year decrease seen across England and Wales in January with falls of 6.2% in London and 4.6% in the South East.

Despite these falls, there were modest price rises in the London Borough of Waltham Forest where average prices hits a record high of more than £557,000 in January.